Some figures released by the central bank showed that then GN bank put more than ¢761million into sister companies Ghana Growth Fund and Gold Coast Fund Management Limited.

It was these affiliate companies which made ‘risky’ investments with government leading to unpaid debts, he told Malik Abass Daabu.

He said these affiliates should have balanced their risk-taking without exposing depositors and their clients. It is the failure to do so that has indirectly affected the cash cow – GN Savings & Loans.

The Bank of Ghana, he explained, sympathised with GN Bank which was why it was downgraded to a Savings & Loans company in January 2018.

This was to allow the downgraded entity to resolve its debt problems directly with its affiliates and indirectly with government but GN Savings & Loans has not been able to do so, Elliot Amoako said.

The central bank, he said, has a duty to protect depositors who had been frustrated with GN Savings & Loans inability to honour its obligations. The required minimum operating capital of 15m cedis had been impaired, the top official explained.

It’s Capital Adequacy Ratio (CAR) which indicates a company’s ability to meet is financial obligation had reached -61%, in breach of the minimum required of 13%, the central bank has said.

The revocation of the licence was important to protect depositors, the Deputy Director at Bank of Ghana stressed.

Elliot Amoako also faulted the business model of Groupe Nduom in using depositors funds at erstwhile GN bank to finance its other companies. It is “problematic”, he said, describing it is bad governance frowned upon by Ghana’s banking norms.